An Investor Focused Business Plan

An investor focused business plan contains relevant information about your project. It addresses their concerns, questions and should allay fears that any potential investor may have. It should meet their needs exactly, because investors exist to make substantial returns on the capital they invest. They want to see a good return on their investment, and the way to do that is by compiling an investor focused business plan, so that it is clear to investors that you understand your business, you are focused, prepared to meet the challenges and competent.

It is always useful to prepare an ‘Executive Summary’ or abstract from the proposal. Then, in 500 words, or less, give the essence of your proposal so the reader understands your plan. As a rule, if the investor can get their minds around what you hope to accomplish, and how, from reading just your summary, and assuming it is a workable plan, then you should have a good chance of getting the investment you need. If the reviewer is at all confused after reading your abstract, you quite probably will not get the funding. In many ways, the ‘Executive Summary’ is the most important part of your entire proposal.

You can safely assume that the investor has seen so many poor proposals that people threw together without thinking them through, that they already believe that you have not put in the effort to think through your implementation plan. The investor wants to give you the money, as long as they can see there is a solid potential return.

There are four areas that need to be addressed by your proposal:

1. Management Responsibility
2. Know Your Markets
3. Know Your Product
4. Know How Management, Markets and Product Make Money

Management Responsibility

The strength of management assigned to the project can make or break your proposal. Investors need reassurance that you can manage their money. They will want to see a demonstrable track record in areas specific to the project you are pitching. The ability of management will be tested so be very prepared.

Know Your Markets

Your proposal writing will show investors where your income will be coming from. Your company must demonstrate a strong understanding of your customer base and be able to fulfill their needs. Your plan also must address the issues of any potential new or growth markets. Illustrate any research you have conducted to emphasize this so they can gain a feeling of your understanding of the market you are in.

Know Your Product

investors will want to fully understand your product. They will want you to demonstrate how the product that they are funding will attract customers. The information in this section must be extensive and also feature any potential expansions or upgrades that your product will feature. This will show that you have thought about long-term growth.

Know How Management, Your Market Knowledge and Your Products Make Profits

You must demonstrate that your management ability creates the links and paths between customers and products that make money. This element of your proposal writing must be very strong as ambiguous information, or assumptions will scare off any potential investor. Good proposal writing will create a step-by-step guide of how sales will be achieved and how the profit margin will provide the return on investment that the investor needs. This has to be clearly shown.

Professional Proposal Kits – Accurately quote your projects, multiply your profitability, brand yourself as a top professional and close the sale. Proposal Kit helps you demonstrate that you are the right professional for your customers and makes your proposal writing count.

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Source: Proposal Writing at www.your-career-change.com

What if each side thinks that they won and the other side lost-would that be win-win?

Before you dismiss that possibility think about it more. What if you’re selling something and leave the negotiation thinking, “I won. I would have dropped the price even more if the other person had been a better negotiator”? However the other person is thinking that she won and that she would have paid more if you had been a better negotiator.

So both of you think that you won and the other person lost. Is that win-win? Yes, I believe it is, as long as it’s a permanent feeling.

Besides constantly servicing the perceptions that the other side won, observe these four fundamental rules:

Rule one of win-win negotiating: Don’t narrow it down to just one issue

Rule two of win-win negotiating: People are not out for the same thing

Rule three of win-win negotiating: Don’t try to get the last dollar off the table

Rule four of win-win negotiating: Put something back on the table

Read more about the strategy of Win-Win Power Negotiation thanks to Roger Dawson Roger Dawson Founder of the Power Negotiating Institute http://www.rdawson.com

Warm up. Don’t jump into a negotiation cold. Before you even face off with your opponent, figure out for yourself what would count as a victory. What do you exactly want out of the trade-and at what price?

Know when to pass. On the other hand, if the item is far from dreamy-and you’re pretty sure something better may come along later-you could pass on negotiations. Or go for the score. Offer a lowball price. If you win, you won’t be out too much, and if you lose, it won’t leave a mark either. But be certain if you play this game. You could miss this opportunity without a guarantee of future prospects.

Practice before you play. Also, research the item before you make a play on it. This knowledge, such as the going price and quality markers, can work as leverage during the negotiating, too.

Read more about the Science And Art Of Negotiation

I want to get better at negotiation, but where to start? UK Amazon currently has 2332 books on negotiation. Google indexed nearly 4 million relevant (yeah right) pages. All I need is a simple, straightforward model that I can put to use now.

Phased by the glut of information, I went within and remembered the wise teachings from a senior manager in my early working life. So, come closer, listen up, because he was very wise indeed…

He said “Do you know your LIMits?”

“My what? said I cautiously, wondering if he was asking about my drinking capacity, driving speed or something equally off the wall.

Being worldlier than I, he noticed my confusion and helped me out. Read How…

This article covers the key areas of:

• What is Negotiation?
• Characteristics of Negotiation;
• Conditions for Negotiation;
• Styles of Negotiation;
• Basic Structure of the Negotiating Process;
• 12 Stages of Negotiation;
• Influencing Factors of Negotiation;
• Effective Negotiation Skills;
• Best Negotiation Tips;
• Ask For More Than You Expect To Get.

Author: Mahbubur Rahman Nazmi

Bachelor of Law (continuing)
Assistant Editor, Students Law Review (SLR)
Publication Secretary, Law Students’ Forum (LSF)
ASA University Bangladesh (ASAUB)
Dhaka, Bangladesh-1207

Article Source: http://EzineArticles.com/?expert=Mahbub_Nazmi
http://EzineArticles.com/?Effective-Method-of-Negotiation&id=1671981

Be willing to negotiate in the first place:

Some people are too shy to talk about money. Others think it’s rude or demeaning. And in many cases they’re right. However, when it comes to doing a deal – and we all have to sometimes – being unwilling to engage in “money-talk” can be a very expensive business. There are a lot of experienced negotiators out there. If you’re buying a house or a car, or taking a new job, you can be sure you’ll have to deal with such a person. If they can see you’re timid about the whole business, many will take advantage of that fact. You also shouldn’t be shy about turning something that may not immediately appear to be a negotiation into one. If I’m buying a few expensive things from the same store, I’ll often ask them to throw something in for free or reduce the price. Just because there’s no sign saying you can do that, doesn’t mean you can’t. Often, simply by asking for something extra I’ll get a better deal

Don’t get emotionally involved:
One big mistake many amateur negotiators make is to become too emotionally attached to winning. They shout, threaten and demand to get their way. This is all counter-productive. Most deals are only possible if both people feel they’re getting something out of it. If the person across the table feels attacked, or doesn’t like you, they probably won’t back down. Many people hate bullies, and will be more willing to walk away from a transaction if it involves one. Keep calm, patient and friendly, even if the other person starts losing their cool. Make sure you leave any pride or ego at the door. You are more likely to do well that way.

Don’t get suckered by the “rules” trick:
When someone sends me a contract to sign, if there’s something on there I don’t like, I’ll cross it out. I’m also happy to write things I want added in if I think they should be there. Sometimes, the other party will come back to me and say “You’re not allowed to make changes to our contracts like that”. Oh really? Since I’m the one signing the thing, I’ll make any changes I want, thank you very much. There’s no law that says they’re the only one allowed to add things to a contract. If they’re not happy with my changes, let me know and we can work it out, but don’t simply tell me I don’t have permission.

This highlights a common tactic used by experienced negotiators such as real estate agents, employment agents, car salespeople and the like. They know many people are sticklers about following rules. So they’ll make up official sounding pronouncements and insist that “this is the way it’s done” or “you’re not allowed to do that”. If someone starts trying to box you in by adding rules to the deal, ask them to provide proof that such rules really exist.

Never be the first person to name a figure:
This is an expensive lesson to have to learn, but a good one. I do a lot of contract work, and one of the first questions I’m usually asked is “What’s your hourly rate?” This is a high pressure question, and I often found myself blurting out a figure that was lower than what I really wanted. These days, I’ve learned the importance of getting the other person to say a number first. Now, I respond to that question by asking “What’s the budget for this contract?” Often, I’m surprised to discover they’re offering me a better deal than I thought they were.

Ask for more than you expect to get:
Once the other person’s given their figure, even if it’s much better than you expected, say something like “I think you’ll have to do better than that”. Don’t be arrogant or aggressive. Just say it calmly. When they enquire about your expectations, ask for more than you expect to get. Few people will walk away from a deal once it’s commenced, and you can let the other person feel as if they’re winning by lowering your “unrealistic expectations” a bit at a time.

Just giving the impression that you’re willing to walk away can do wonders for getting a better deal. Always play the reluctant buyer or seller.

These ‘best negotiation tips’ are extracted from the Effective Method of Negotiation
By Mahbub Nazmi

Speaking:
Negotiation begins with a clear, concise explanation of the problem as each person sees it. Facts and feelings are presented in a rational manner from the individual’s perspective, using “I” statements. Communication between people will go more smoothly when statements such as “I become very upset when you “are used rather than more aggressive statements such as “You make me mad when you,” which blames the other person and puts him or her in a defensive position. Shared concerns rather than individual issues remain the focus of discussion throughout negotiation. The negotiation process will be most effective when people take time to think through what they will say. When possible, plan ahead to meet at a time and place convenient to everyone. A quiet, neutral spot where there are few distractions or interruptions is perfect for open discussion.

Listening:
Listening is an active process of concentrating all of one’s attention on the other person. Encouraging the other person to share thoughts and feelings, giving feedback on what has been heard, and maintaining eye contact are skills that show you are interested in understanding what he or she has to say. It is always helpful to simply ask, “I understood you to say Am I correct in this?” or “I hear you saying that you are that how you feel?” Active listening assures the other person that he or she is heard, accepted and respected. The ability to listen actively supports open, ongoing negotiation. Thinking ahead or anticipating the course of the discussion is distractions that interfere with listening. Poor attention and listening can lead to misunderstandings, inappropriate solutions and continuing conflict.

Understanding:
Before two sides can look for solutions; a common understanding must be reached. If two people do not understand each other’s problems and concerns, then the process of negotiation will either be broken off or will end with solutions that do not work. Active listening encourages understanding. It is important to pay close attention to what someone says as well as to how he or she behaves. Body language, including facial expressions, hand gestures and degree of eye contact, can provide clues about the other person’s thoughts and feelings. Observations, however, are shaped as much by the observer as by the person being observed. It is good practice never to assume to understand the other person without first asking, “Did I hear you correctly?” or “I have noticed that you appear” or “I sense you are under strain. Do you want to talk about this?” and “I’d like to hear from you about how you are feeling” are all good examples of statements that encourage communication and better understanding between people.

These key negotiation skills are as described in Effective Method of Negotiation
By Mahbub Nazmi

Always remember however, that speaking does not mean hearing and that listening does not guarantee understanding, so check and reflect to make sure the message is clear.

Negotiator: Negotiation process is influenced by various factors. The first such factor is the skill and ability of the negotiator, his character and credibility. Another ability, which is a major factor in negotiation, is that the negotiator should keep control over the process. A negotiator should review the progress of the negotiation process; time and again endeavor to build bridges between the parties. He or She should try to create a positive attitude towards agreement. A great deal of skill and experience are necessary to control the entire process of negotiation, which can be gained by keen observation of strategies adopted by other parties, past experience and studying the best negotiation processes in the contemporary world.

Parties: Parties are a major influence on the negotiation process. The parties, their interests and the way they react and respond decide the process. Parties to a dispute have their own mindset when they come to a negotiation table.

Selection of the team: The team of negotiation should be selected basing on case and circumstances, so that each member contributes towards achieving the goal with productive working.

Place of negotiation: Sometimes the place of negotiation matters. Unfamiliar surroundings may cause stress to the opposite party in comparison to a familiar place.

Layout of the room: The layout of the room has an influence on the conduct of the negotiation to some extent. Ideally the layout should be chosen taking into consideration the circumstance in which the parties operate. For example, if the negotiation in with regard to any industrial dispute, negotiators should ensure that the distance between the parties is not too much. The seating arrangements should be such so as to encourage a relaxed mood. The design of layout should reflect attitudes and perceptions and issues being discussed in negotiation.

Psychology in negotiating: Psychology of the negotiators, as well as the parties plays an important role in the activity of negotiation. The people involved in the process work with different attitudes, approaches and activities.

According to Maslows’ ‘Need Hierarchy Theory’, behavior of people is influenced by their needs. People’s needs are classified by him into:

1. Physical and survival needs;
2. Security and safety needs;
3. Social needs;
4. Ego needs;
5. Self realization needs.

These influencing factors of negotiation are taken from Effective Method of Negotiation
By Mahbub Nazmi

Stage 1: Evaluate and Select a Strategy to Guide Problem Solving
• Assess various approaches or procedures–negotiation, facilitation, mediation, arbitration, court, etc.–available for problem solving.
• Select an approach.

Stage 2: Make Contact with Other Party or Parties
• Make initial contact(s) in person, by telephone, or by mail.
• Explain your desire to negotiate and coordinate approaches.
• Build rapport and expand relationship
• Build personal or organization’s credibility.
• Promote commitment to the procedure.
• Educate and obtain input from the parties about the process that is to be used.

Stage 3: Collect and Analyze Background Information
• Collect and analyze relevant data about the people, dynamics and substance involved in the problem.
• Verify accuracy of data.
• Minimize the impact of inaccurate or unavailable data.
• Identify all parties’ substantive, procedural and psychological interests.

Stage 4: Design a Detailed Plan for Negotiation
• Identify strategies and tactics that will enable the parties to move toward agreement.
• Identify tactics to respond to situations peculiar to the specific issues to be negotiated.

Stage 5: Build Trust and Cooperation
• Prepare psychologically to participate in negotiations on substantive issues. Develop a strategy to handle strong emotions.
• Check perceptions and minimize effects of stereotypes.
• Build recognition of the legitimacy of the parties and issues.
• Build trust.
• Clarify communications.

For stages 6 – 12

Stage 6: Beginning the Negotiation Session
• Introduce all parties.
• Exchange statements which demonstrate willingness to listen, share ideas, show openness to reason and demonstrate desire to bargain in good faith.
• Establish guidelines for behavior.
• State mutual expectations for the negotiations.
• Describe history of problem and explain why there is a need for change or agreement.
• Identify interests and/or positions.

Stage 7: Define Issues and Set an Agenda
• Together identify broad topic areas of concern to people.
• Identify specific issues to be discussed.
• Frame issues in a non-judgmental neutral manner.
• Obtain an agreement on issues to be discussed.
• Determine the sequence to discuss issues.
• Take turns describing how you see the situation. Participants should be encouraged to tell their story in enough detail that all people understand the viewpoint presented.
• Use active listening, open-ended questions and focusing questions to gain additional information.

Stage 8: Uncover Hidden Interests
• Probe each issue either one at a time or together to identify interests, needs and concerns of the principal participants in the dispute.
• Define and elaborate interests so that all participants understand the needs of others as well as their own.

Stage 9: Generate Options for Settlement
• Develop awareness about the need for options from which to select or create the final settlement.
• Review needs of parties which relate to the issue.
• Generate criteria or objective standards that can guide settlement discussions.
• Look for agreements in principle.
• Consider breaking issue into smaller, more manageable issues and generating solutions for sub-issues.
• Generate options either individually or through joint discussions.
• Use one or more of the following procedures:
• Expand the pie so that benefits are increased for all parties.
• Alternate satisfaction so that each party has his/her interests satisfied but at different times.
• Trade items that are valued differently by parties.
• Look for integrative or win/win options.
• Brainstorm.
• Use trial and error generation of multiple solutions.
• Try silent generation in which each individual develops privately a list of options and then presents his/her ideas to other negotiators.
• Use a caucus to develop options.
• Conduct position/counter position option generation.
• Separate generation of possible solutions from evaluation.

Stage 10: Assess Options for Settlement
• Review the interests of the parties.
• Assess how interests can be met by available options.
• Assess the costs and benefits of selecting options.

Stage 11: Final Bargaining
• Final problem solving occurs when:
• One of the alternatives is selected.
• Incremental concessions are made and parties move closer together.
• Alternatives are combined or tailored into a superior solution.
• Package settlements are developed.
• Parties establish a procedural means to reach a substantive agreement.

Stage 12: Achieving Formal Settlement
• Agreement may be a written memorandum of understanding or a legal contract.
• Identify “what ifs” and conduct problem solving to overcome blocks.
• Establish an evaluation and monitoring procedure.
• Formalize the settlement and create enforcement and commitment mechanisms.
• Judicial review

The 12 Stages Of Negotiation ia an extract from Effective Method of Negotiation
By Mahbub Nazmi